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Source: IRS.GOV/ Issue Number: IR-2018-195 WASHINGTON — The Internal Revenue Service issued guidance today on the business expense deduction for meals and entertainment following law changes in the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the...

Source: IRS.GOV/ Issue Number: Tax Reform Tax Tip 2018-125 The IRS urges high-income taxpayers and those with complex tax returns to complete a “paycheck checkup.” Doing so will help them see if they are having the correct amount of taxes withheld from their paychecks...

Source: IRS.GOV/ issue Number IR-2018-166 WASHINGTON – The Internal Revenue Service urges taxpayers who support dependents who can’t be claimed for the Child Tax Credit to do a paycheck checkup soon. The IRS Withholding Calculator can help these taxpayers make sure...

Source: IRS Media Advisory With the year more than halfway over, the Internal Revenue Service urges taxpayers who haven’t yet done a “Paycheck Checkup” to take a few minutes to see if they are having the right amount of tax withholding following major changes in the...

Source: IRS.GOV/ issue Number Tax Tip 2018-111 Everyone should know how the IRS contacts taxpayers. This will help people avoid becoming a victim of scammers who pretend to be from the IRS with a goal of stealing personal information. Here are some facts about how the...

Source: IRS.GOV/ issue Number IR-2018-149 WASHINGTON – Before starting a summer job, taking a vacation or sending the kids off to camp, the Internal Revenue Service wants taxpayers to know that some summertime activities may qualify for tax credits or deductions. The...

Source: IRS.GOV/ issue Number 2018-103 Taxpayers who owed additional tax when they filed their federal return earlier this year should do a “paycheck checkup” as soon as possible. The IRS Withholding Calculator and Publication 505, Tax Withholding and...

Source: IRS.GOV/ Issue Number 2018-101 Some taxpayers will receive a letter from the IRS this summer. Taxpayers should not panic and remember that they have fundamental rights when interacting with the agency. These rights are in the Taxpayer Bill of...

Source: IRS.GOV / issue Number: 2018-100 Taxpayers who make an effort to comply with the law, but are unable to meet their tax obligations due to circumstances beyond their control may qualify for relief from penalties. After receiving a notice stating the...

Source: IRS.gov | Issue Number: 2018-95 Every year the IRS mails millions of letters to taxpayers for many reasons. Here are some tips and suggestions for taxpayers who receive one: Don’t ignore it. Most IRS letters and notices are about federal tax...

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Individual Income Tax:

You are taxed, like all US citizens, on your individual taxable income, which is your total gross pay, minus some allowed exclusions, exemptions, and deductions.

Tax rates are determined, depending on your taxable income. Sometimes you may have tax credits that apply, which may lower your individual tax liability.

Adjusted Gross Income:

Under the Internal Revenue Code of 1986 (the “Code”), gross income means “income from whatever source derived” except for certain items specifically exempt or excluded by statute.

Sources of income could include capital gains, rents, dividends, alimony, compensation for services, pensions, interest, royalties, annuities, income from life insurance, pensions, and gross profits from a business, or income from S Corporations, trusts, or estates.

Statutory exclusions from gross income would include death benefits paid under a life insurance contract, interest on some state and local bonds, health insurance provided by your employer, pension contributions provided by your employer and other benefits or contributions paid by your employer.

Your adjusted gross income, also referred to as your AGI, is determined by subtracting your deductions, or exemptions, from your gross income. These deductions could include such items as business expenses, contributions to a retirement plan if you’re self-employed, contributions to IRA’s, some moving expenses, certain educational costs, alimony payments, and more.

Taxable Income:

To determine what your taxable income is, we reduce your AGI by any personal exemptions you are eligible for, and either the standard deductions that apply to you, or your itemized deductions.

We determine each case on an individual basis, determining how best to save you money. Personal exemptions are allowed for you, your spouse, and any dependents you may have. The amount of money allowed for each personal exemption changes annually, allowing for inflation rates.

You may be in a situation in which it would be more beneficial for you to itemize your deductions rather than just take your standard individual deductions…This may save you more money on your taxes…

Some examples of items that can be used as itemized deductions include state and local income taxes, business expenses for self-employed individuals, property taxes, mortgage interest payments, charity contributions, some investment interest, and medical expenses if they are more than 10% of your AGI, as well as, some miscellaneous expenses.

Tax Legislation:

Are You Sure?

So…Are You Sure? This is only the tip of the iceberg! Tax legislation changes every year…Sometimes it changes within the year…

But…One thing is for sure…And never changes…Tax legislation is complicated…

Therefore…If you want to save the most on your taxes…And make sure you are following all the proper tax legislation laws when your taxes are filed…Make sure your CPA is current on tax legislation…

We ARE Sure…That’s what we pride ourselves on…Making sure your taxes are done right, and in your best interests…